Oracle R12.2.9 - Accounting entries Setoff for Supplier Invoice Approval workflow rejection case

Dear All,

Our Business has created a Supplier Invoice and accounted the Invoice as per the Process defined. Invoice has been Initiated Workflow for Approval and approver "Rejected" the Invoice. 

Subsequently Business Team has created a Debit Memo (DM), Sent to Supplier upon DM approved through Workflow. This DM has been selected as part of PPR and Paid.

Now, the accounting entries were not setoff properly as Initial Invoice Liability was not set off due to Invoice in "Rejected" status.

Request to advise me the correct Process in above scenario to set off accounting entries for Standard Invoice which is in Rejected status.